NORIT AMERICAS ANNOUNCES July 2008 PRICE INCREASE
Marshall, TX – May 30, 2008 –Effective July 1, 2008, Norit Americas Inc. is announcing a price increase of 5.4% to 11.8% depending on the specific activated carbon product.
In 2008, inflation drove our manufacturing costs at accelerated rates. Higher prices for energy, steel, refractory, packaging, transportation, and the devaluation of the US Dollar, all affect our costs. Activated carbon manufacturing is highly dependent on energy, as the raw material is coal or lignite, and the process uses considerable amounts of steam. Some of the major increases we have experienced are with raw materials, transportation, chemicals, packaging materials and exchange rate.
Norit Americas is investing significant capital to improve energy efficiency, increase productivity, and reduce costs. Norit is currently investing more capital than ever before in our history. Inflation also impacts the costs of these investments, with the cost of steel increasing 30% to 60% over the last six months and the cost of refractory increasing some 20% since January. In late 2008, our Marshall, Texas Plant will start-up a state-of-the-art production line, the first in the United States in over ten years. The activated carbon market is in tight supply. Norit’s increased capacity and productivity will help to serve the market and ensure our customers have an uninterrupted supply of carbon. Manufacturing closer to home minimizes supply chain risks for you and ensures the high quality you have come to expect from Norit Americas.
Since Norit manufactures a wide variety of carbons, we have structured this price increase to reflect the cost increase of domestic and imported carbons separately. Therefore, prices will be increased in the following manner:
 Lignite and coal based carbons will increase 5.4%.
Imported carbons will increase 11.8%.
We value the business you have entrusted to us and assure you that we are continuing our cost control efforts. We appreciate your patience and understanding during this challenging period.
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